Vet News: VA Secretary Nicholson: Some Vets to Receive Insurance Dividends

WASHINGTON– December 8, 2006

More than a million Veterans are in line to share $369 million in annual insurance dividends during 2007, according to the Department of Veterans Affairs (VA).

“These dividends are tangible evidence of VA’s continuing commitment to safeguard the interests of ’s Veterans,” said Secretary of Veterans Affairs Jim Nicholson.

VA operates one of the nation’s largest life insurance programs, providing more than $1 trillion in coverage to 4.5 million service members, spouses and children.

The dividend payments will be sent to an estimated 1.2 million holders of VA insurance policies on the anniversary date of their policies.

Sent automatically through different payment plans, the amounts will vary based on the age of the veteran, the type of insurance, and the length of time the policy has been in force.

The dividends come from the earnings of a trust fund into which Veterans have paid insurance premiums over the years, and are linked to returns on investments in government securities.

VA officials caution Veterans about a long-running scam in which various groups charge fees to “locate” Veterans who are eligible for the dividends.

Veterans eligible for the dividends have had VA life insurance policies in effect since they left the military and have received annual notifications from VA about the policies.

Dividends are paid each year to Veterans holding certain government life insurance policies and who served between 1917 and 1956.

World War II Veterans holding National Service Life Insurance ("V") policies comprise the largest group receiving 2007 insurance dividend payments.

They are expected to receive total payments of $286.3 million.

An additional group of World War II era Veterans, those who have Veterans Reopened Insurance ("J", "JR" and "JS") policies, will in total receive dividends of $10.1 million.

Korean War era Veterans who have maintained Veterans Special Life Insurance ("RS" and "W") policies can expect to receive dividends totaling $71.6 million.

Dividends totaling $1million will be paid to Veterans who served between World War I and 1940 and who hold U.S. Government Life Insurance ("K") policies.

Veterans who have questions about their policies may contact the VA insurance toll-free number at 1-800-669-8477 or send an e-mail to [email protected].

They may also visit the Internet at www.insurance.va.gov

Source: VA Office of Public Affairs